KERALA STATE ELECTRICITY REGULATORY COMMISSION ANNUAL REPORT Kerala State Electricity Regulatory Commission 2019-20 KPFC Bhavanam, C.V. Raman Pillai Road, Vellayambalam, Thiruvananthapuram 695 010 Phone: 0471-2735544 | Fax: 0471-2735599 | Email: [email protected] | Website : www.erckerala.org St. Joseph’s Press, Tvm KERALA STATE ELECTRICITY REGULATORY COMMISSION ANNUAL REPORT 2019-2020 (To be placed before the Kerala Legislative Assembly, as per Section 105 of Electricity Act, 2003) 2 KSERC Annual Report 2019-20 CONTENTS 1. Introduction 2. The Commission 3. Functions of the Commission 4. Chairman & Members of the Commission 5. Office of the Commission 6. State Advisory Committee 7. State Co-ordination Forum 8. Licensees 9. Proceedings of the Commission 10. Regulations issued by the Commission 11. Abstract of disposal of petitions 12. Orders issued by the Commission 13. Application of Information Technology 14. Associations with other bodies 15. Consumer Grievance Redressal Forum (CGRF) 16. Electricity Ombudsman 17. Compliance of the Electricity Act, 2003, and the Rules and Regulations made thereunder. 18. Engagement of Auditors 19. Implementation of Right to Information Act 20. Legal Matters 21. Finance and Account 22. COVID – 19 Pandemic Annexure I- List of proceedings/hearing held by the Commission during 2019-20 Annexure II – List of inspections conducted by Junior Consultants during 2019-20 Annexure III- Annual Accounts 2019-20 Annexure IV- Separate Audit report of the Comptroller and Audit General of India on the Accounts for the year 2018-19 KSERC Annual Report 2019-20 3 4 KSERC Annual Report 2019-20 1. INTRODUCTION The Kerala State Electricity Regulatory Commission, established in the year 2002, entered into its 18th year of service in 2019-20. During this period, this Commission has taken all efforts to establish, maintain and perpetuate a fair, transparent and objective regulatory system in the Power Sector in the State of Kerala. The objective of this Annual Report is to present to the Hon’ble Legislature, licensees, stakeholders and interested public, the Commission’s activities during the financial year 2019-20. As in the previous reports, this annual report also provides an insight into the earnest and concerted efforts made by the Commission for achieving its functions specified in the ElectricityAct, 2003. 2. THE COMMISSION The Kerala State Electricity Regulatory Commission was constituted as a quasi-judicial body under Sub-section (1) of Section 17 of the Electricity Regulatory Commissions Act, 1998 vide Government Order G.O.(MS).No.34/2002/PD dated 14th November, 2002, published in the Government of Kerala Gazette, Extra-Ordinary dated 18th November, 2002. The Commission is a body corporate having perpetual succession and a common seal, with the power to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued. The Commission, came under the purview of the Electricity Act, 2003, with effect from 10th June, 2003 as the Electricity Regulatory Commissions Act, 1998 was repealed. The Commission consists of a Chairperson and two Members. In recognition of the need for a multi-disciplinary approach so as to address issues related to objective, unbiased and independent regulations, the statute prescribes that the Chairperson and Members shall be persons of ability, integrity and standing who have adequate knowledge, experience and proven capacity in dealing with problems relating to engineering, finance, commerce, economics, law or management. The Chairperson and the Members are appointed by the Government of Kerala on the recommendation of a Selection Committee constituted under the statute. The statute also provides for the appointment of a Secretary to the Commission, whose powers and duties are as delegated by the Commission. 3. FUNCTIONS OF THE COMMISSION The Commission is vested with the responsibility of performing the following functions under Section 86 and other enabling provisions of the Electricity Act, 2003. (a) Determination of the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State; (b) Regulating the purchase of electricity and procurement process of distribution licensees including the price at which electricity shall be procured from the generating companies or licensees or from other sources through agreements for purchase of power for distribution and supply within the State; (c) Facilitating intra-state transmission and wheeling of electricity; (d) Issuance of licences to persons seeking to act as transmission licensees, distribution licensees and electricity traders with respect to their operations within the State; KSERC Annual Report 2019-20 5 (e) Promoting co-generation and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licensee; (f) Adjudication of the disputes between the licensees and generating companies and to refer any dispute for arbitration; (g) Levying fee for the purposes of the Electricity Act, 2003; (h) Specifying Kerala Electricity Supply Code; (i) Specifying State Grid Code; (j) Specifying regulations relating to standards of performance and enforcement of standards with respect to quality, continuity and reliability of service by licensees; (k) Fixing the trading margin in the intra-State trading of electricity, if considered, necessary; (l) Discharging such other functions as may be assigned to it under the Electricity Act, 2003; (m) Advising the State Government on all or any of the following matters, namely:– (i) Promotion of competition, efficiency and economy in the activities of the electricity industry; (ii) Promotion of investment in the electricity industry; (iii) Reorganization and restructuring of the electricity industry in the State; (iv) Matters concerning generation, transmission, distribution and trading of electricity or any other matter referred to the State Commission by the State Government. (n) Management of Kerala State Electricity Regulatory Commission Fund constituted under Section 103 of the Electricity Act, 2003. 4. CHAIRMAN AND MEMBERS OF THE COMMISSION Sri. Preman Dinaraj.R, IA&AS (Retd.) who was sworn in as Chairman on 1st August 2017 continued as Chairperson. Sri.S.Venugopal continued as Member, whereas Sri. K. Vikraman Nair continued as Member till his retirement, on attaining five years of service in the Commission on 04.12.2019. Sri.G.Jyothichudan continued as Secretary till 24.12.2019 and thereafter Sri.C.R.Satheesh Chandran assumed charge as Secretary i/c from 26.12.2019. 5. OFFICE OF THE COMMISSION The Commission’s Office is located at KPFC Bhavanam on C.V. Raman Pillai Road, Vellayambalam, Sasthamangalam P.O., Thiruvananthapuram – 695010. 6 KSERC Annual Report 2019-20 6. STATE ADVISORY COMMITTEE The State Advisory Committee constituted as per Section 88 of the Electricity Act, 2003 is entrusted with the task of advising the Commission on major questions of policy, matters relating to quality, continuity and extent of service provided by the licensees; compliance by licensees with the conditions and requirement of their license, protection of consumer interest and electricity supply and overall standards of performance by utilities. The Committee reconstituted as per notification No. 955/ Admn./2013/KSERC dated 03.02.2015 continued during the period also. The following were the members of that Committee. (1) Shri. Preman Dinaraj.R, Chairman Kerala State Electricity Regulatory Commission : Ex-officioChairman (ii) Shri. K.Vikraman Nair, Member Kerala State Electricity Regulatory Commission : Ex-officio Member (iii) Shri. S.Venugopal, Member Kerala State Electricity Regulatory Commission : Ex-officio Member (iv) The Secretary, Power Department, Government of Kerala, Thiruvananthapuram. : Ex-officio Member (v) The Secretary, Consumer Affairs Department, Government of Kerala, Thiruvananthapuram. : Ex-officio Member (vi) The Chairman and Managing Director, Kerala State Electricity Board Ltd, Vyduthi Bhavanam, Pattom, Thiruvananthapuram. : Member (vii) The Director (Distribution&Generation-Electrical) Kerala State Electricity Board Ltd,Pattom Thiruvananthapuram : Member (viii) The Director, Energy Management Centre, Sreekariyam P.O., Thiruvananthapuram. : Member (ix) The Director, ANERT, Thiruvananthapuram : Member (x) The General Manager, N.T.P.C., Kayamkulam : Member (xi) Sri. K. Asokan, Chairman, Friends of Electricity Employees and Consumers, ‘Madhavam’, Mayanad P.O., (Via.) Medical College, Kozhikode- 673 008 : Member (xii) The President, Kerala State Small Industries Association, Veekay Towers, Beerankunju Road, Kochi- 682 018 : Member (xiii) Fr.Thomas Peelianickal, Executive Director, Kuttanadu Vikasana Samithi, Ramankari, Alappuzha : Member (xiv) The Chairman, Confederation of Real Estate Developers’ Association of India (CREDAI), C/o SI Property (Kerala) Private Ltd., ‘Silver Oaks’, Near Golf Club, Thiruvananthapuram- 695 003 : Member KSERC Annual Report 2019-20 7 (xv) Sri. K. P. Babu, Rarichanpuram, Karalink Road, Karaparamba, Kozhikode- 673 010 : Member (xvi) The President, Chamber of Commerce, T.T.C. Road, Jawahar Nagar, Kowdiar, Thiruvananthapuram : Member (xvii) The President ,The High Tension & Extra High Tension Industrial